Agm statement - upbeat.24 Jun 2021 08:36
https://www.investegate.co.uk/fresnillo-plc--fres-/rns/annual-general-meeting-statement/202106240700028711C/
… Fresnillo achieved a strong financial performance in 2020, with total adjusted revenue of over $2.6 billion, up almost 15% and gross profit up by 90.5% to US$879.4 million, driven by a combination of higher prices and lower costs. We took steps to ensure the stability and financial health of Fresnillo, with measures including a limited and targeted hedging programme as a result of the unique market conditions which presented an opportunity to reduce downside risk while retaining significant upside exposure to future silver price increases. We also bought back just over 60% of the outstanding debt that was due to mature in 2023 in addition to placing US$850 million of new debt due to mature in 2050. This new debt has an annual interest rate lower than the original bond set to expire in 2023, reducing our annual financing costs and lowering the balloon payment due in three years' time.…
Throughout the pandemic, we have continued to focus on operational improvement. I am pleased to say that the Fresnillo Full Potential plan is starting to have an impact and the new state-of-the-art Tunnel Boring Machine, designed in conjunction with the manufacturer specifically for the Fresnillo mine, also successfully began operations. Though some working restrictions remain in place, progress to date gives us cause for cautious optimism.
In terms of future growth, construction of our new Juanicipio mine has progressed and is on track to be operational by 4Q 2021. Production will also be increased when the recently-completed Pyrites Flotation Plant at Fresnillo is operational.
Our exploration teams continue to identify and develop potential projects for our pipeline, including at Rodeo, which we expect to become our next open pit gold mine.….
Fresnillo is in a strong position, supported by a proven strategy, a positive culture and an expert executive team. Production has stabilised as expected and the pipeline of new mines and projects - together with a series of improvement programmes, as well as an improving outlook more generally - provides us with solid grounds for optimism.
Sign In
Follow the stocks
